BHP HIKES SOLGOLD STAKE

ANGLO-AUSTRALIAN multinational mining group BHP said on Tuesday that it has entered into a share subscription agreement with SolGold under which SolGold will issue 100 million shares to BHP. SolGold is the majority owner and operator of the Cascabel porphyry copper-gold project in Ecuador. Following completion of the private placement by SolGold, expected to occur tomorrow, BHP’s interest in SolGold would increase from 6 percent to 11.2 percent. BHP has agreed to pay 45 pence (R8.40) per SolGold share, which represents a 32 percent premium to the 20 day volume-weighted average London Stock Exchange price of 34p per share as determined on October 15, 2018. Danny Malchuk, BHP president: Minerals Americas, said Ecuador was a highly prospective region for the next generation of copper supply. “This additional investment in SolGold strengthens our strategic position in the Cascabel copper exploration project. It is consistent with BHP’s strategy to replenish our copper resource base and grow the business,” he said. BHP also has antidilution rights for a two-year period.